Correlation Between Eaton Vance and Nuveen Credit
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Nuveen Credit at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Eaton Vance and Nuveen Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance National and Nuveen Credit Strategies, you can compare the effects of market volatilities on Eaton Vance and Nuveen Credit and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Eaton Vance with a short position of Nuveen Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Nuveen Credit.
Diversification Opportunities for Eaton Vance and Nuveen Credit
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eaton and Nuveen is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and Nuveen Credit Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Credit Strategies and Eaton Vance is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Eaton Vance National are associated (or correlated) with Nuveen Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Credit Strategies has no effect on the direction of Eaton Vance i.e., Eaton Vance and Nuveen Credit go up and down completely randomly.
Pair Corralation between Eaton Vance and Nuveen Credit
Considering the 90-day investment horizon Eaton Vance is expected to generate 6.76 times less return on investment than Nuveen Credit. But when comparing it to its historical volatility, Eaton Vance National is 1.13 times less risky than Nuveen Credit. It trades about 0.02 of its potential returns per unit of risk. Nuveen Credit Strategies is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 427.00 in Nuveen Credit Strategies on August 28, 2024 and sell it today you would earn a total of 152.00 from holding Nuveen Credit Strategies or generate 35.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Eaton Vance National vs. Nuveen Credit Strategies
Performance |
| Timeline |
| Eaton Vance National |
| Nuveen Credit Strategies |
Eaton Vance and Nuveen Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Nuveen Credit
The main advantage of trading using opposite Eaton Vance and Nuveen Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Nuveen Credit can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nuveen Credit will offset losses from the drop in Nuveen Credit's long position.| Eaton Vance vs. Invesco High Income | Eaton Vance vs. Blackrock Muniholdings Ny | Eaton Vance vs. Nuveen California Select | Eaton Vance vs. MFS Investment Grade |
| Nuveen Credit vs. Blackrock Floating Rate | Nuveen Credit vs. BlackRock Floating Rate | Nuveen Credit vs. Nuveen Floating Rate | Nuveen Credit vs. Blackrock Muni Intermediate |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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